Shutterstock photo
Markets

Forex - GBP/USD weakens as BoE interest rate decision eyed

Shutterstock photo

Shutterstock photo

Forex Pros - The pound weakened against the U.S. dollar on Thursday, sliding to an eight-day low, ahead of a decision by Bank of England policymakers on interest rates.

GBP/USD hit 1.6123 during European morning trade, the pair's lowest since February 28; the pair subsequently consolidated at 1.6150, shedding 0.31%.

Cable was likely to find support at 1.6070, the low of February 28 and resistance at 1.6242, Wednesday's high.

The BoE's Monetary Policy Committee began a two-day meeting on Wednesday and was to announce its rate decision later Thursday.

The pound has rallied against the dollar this year, on growing speculation the central bank may raise rates by mid-year to tame inflation pressures, but uncertainty remains over the timing, due to the uneven nature of the U.K. economic recovery.

Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.16% to hit 0.8569.

Also Thursday, the U.K. was to publish official data on manufacturing production, while the U.S. was to publish a key weekly report on initial jobless claims as well as data on the country's trade balance.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos